LLC and transferring everything to it

Discussion in 'Business Operations' started by racer56, Dec 27, 2007.

  1. racer56

    racer56 LawnSite Senior Member
    from Kansas
    Posts: 285

    We are starting a new business in a new location and we are going to start a llc as that is what we have been told to do through the Sec. of State website. One of the things I don't understand is how do I transfer the equipment that I own into the llc and how do I start the llc off with some money to buy things like advertisement and cards, website... I guess the CPA did save us some money in telling us we could do it ourselfs but still would be nice to have some help. It is very hard to get in touch with them so trying to do what I can. I thought maybe some of you ran into the same thing when you started. We had just been a sole p. before.
    I asked about a s carp. but I guess we can switch over to that in the future but it was best to start off this way from what they said. Kansas is the state.
  2. carcrz

    carcrz LawnSite Silver Member
    Posts: 2,085

    you can do a loan to your business for the money. I think you may even be able to rent the LLC the equipment for another deduction.
  3. fknippenberg

    fknippenberg LawnSite Member
    Posts: 49

    talk to an accountant - only way to do it - what they cost you they will save you in taxes over the long run
  4. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    For starter you put your business in the name of the LLC.
    So instead of you owning it, the LLC does.

    What you have then is you are a member or a sole proprietor of the LLC, and the LLC in turn owns your company, all the equipment, and so forth.

    That in and of itself takes care of a lot of problems, you may have to start adding ", LLC" to the end of your business name concerning related paperwork.

    And you still need a local license, remember that LOL.
    I would, however, ask your cpa this question as well, there might be another thing or three.
  5. lawnspecialties

    lawnspecialties LawnSite Silver Member
    Posts: 2,513

    Here in NC, I just went through some of this last year. All I was interested in transferring title to the LLC was my trucks. I just make sure when I buy anything, the bill is made out to Lawn Specialties, LLC.

    With the trucks, I changed the name with my insurance company. They were already under a "business" type policy. Then I went down to DMV to get the titles changed.

    The trick here was I didn't have the titles since they were still under the original loan. I was able to get a signature loan (got lucky) for both balances and paid the trucks off. When I got the titles, I went to DMV and only had to pay the "transfer of title" fee. I think about $40 or so for each truck. BUT, since I did this within a year of forming my LLC, it was no problem. If I had waited over one year, I would have had to pay sales tax! That would have sucked since it would have been several hundred dollars for each truck. They would have considered it a sale from me to the business.

    One more note: The part about the loans, you might want to consider strongly. My CPA and lawyer said you need to get everything out of your personal name. Even if the trucks are in the business name and they are insured in the business name, if someone gets hurt by one of my trucks, a good lawyer could have found my personal name on the loan and would have used that against me. A little bit of hassle but well worth it.:)

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